Jeff Smith 

Given today's global market, international exchanges are more accessible to investors than ever before. Since 2010, Equities First has tripled its international loan transactions using non-U.S. securities as collateral. In fact, over 60% of our transactions are made with shares that trade outside of the United States, on exchanges in Hong Kong, Singapore, Australia, the United Kingdom, Canada and Mexico. Most shares traded on non-U.S. stock exchanges are eligible for securities-based loans. With Equities First, international clients are given accessibility to worldwide markets.

Since over 60% of our business is non-U.S., we have deep knowledge of international securities regulations and expertise working globally. Our investment banking partners include some of the top global financial institutions. Working with them enables us to have greater worldwide reach to better serve our international clients.

Our clients come to us from around the globe because of the many advantages they see in obtaining a securities-based loan from EFH. A securities-based loan uses one's stock as collateral for a secured loan. The collateral can be any type of security, whether stocks, bonds or mutual funds. Equities First offers a different type of securities-based loan: a non-purpose loan. A non-purpose loan is a more flexible alternative for individuals who do not want to sell their securities to obtain liquidity.

This type of loan allows greater freedom and the utmost flexibility. With this type of non-purpose loan is also non-recourse. Thus, the borrower is not held liable in the event of a default. The lender cannot seize non-pledged assets or properties, and the borrower has the option to walk away from the loan with no penalties. With a non-purpose loan, there is no limitation on the borrower's use of proceeds, whether it is for expanding a business, paying a mortgage, or personal use.

Our international clients receive the same advantages and quality service for their loans as our U.S. clients. With an EFH loan, borrowers can receive up to 80% loan to value and lower-than-market fixed interest rates. There is no price requirement and virtually all types of securities are accepted. Prior to the inception of a transaction, an individual or institution receives an extensive loan/pledge agreement, which clearly outlines the EFH process. Once an individual presents securities and accepts the terms offered, he can get funded within ten business days. A loan term is typically three years. At the end of the loan term, once the loan is repaid in full, EFH returns the identical amount of pledged collateral.

Al Christy 

As you know, it wasn’t too long ago that homes provided many with a deep and seemingly endless pool of loan collateral. Depressed real estate values combined with tight lending standards have taken this option off the table for many homeowners. However, those same consumers are discovering an alternative: securities-based loans.

Securities-based loans make use of stocks, bonds or exchange traded funds as collateral. The most common form of a securities-based loan is a margin loan, which typically allows you to borrow up to 50 percent of the value of stocks in your account, and a higher percentage for less volatile assets such as Treasury or municipal bonds.

We at Equities First Holdings offer another type of securities-based loan, called a non-purpose loan, which follows similar collateral rules but carries better rates and terms than a margin loan. While many people are familiar with margin as a way to finance stock purchases with borrowed funds, the loan proceeds from those arranged by Equities First Holdings can be used for virtually any purpose.

Loans provided by Equities First Holdings provide an excellent alternative for people who don’t want to liquidate securities to raise money they need by providing flexible access to the power of a portfolio. And the use of the proceeds is entirely up to the borrower. Securities-based loans can be used as a short-term financing bridge while a consumer waits for a house to sell, to fund nursing home expenses, or even for emergency situations such as repairing a roof. Proceeds can be used to fund the expansion of a business, for home construction or refinancing a commercial mortgage.

Two heart-wrenching stories, illustrate the broad uses for the proceeds from loans arranged through Equities First. The first involved a family who owned an apple farm. They had exhausted all of their commercial loans and were on the verge of filing for bankruptcy. They needed $3.5 million to keep the farm operating. The family did have a stock portfolio and we were able to arrange the loan they needed, and did so within five-to-seven days, saving the farm.

The other story concerns a husband and wife. She had cancer and their insurance company dropped them. They had access to a portfolio with stock that could not have been used as collateral under most circumstances; however, using that stock as collateral, we were able to get them the much-needed $250,000. This story also has a happy ending as the woman received treatment and her cancer went into remission.

The point: proceeds from securities loans arranged by Equities First offer borrowers’ wide latitude in how they are used. Global institutional investors look to EFH to provide securities-based lending services as a more flexible alternative with significant advantages over conventional margin loans. From individuals with short-term needs for a few hundred thousand dollars to large investment institutions looking for options for their clients to diversify multimillion dollar portfolios, an EFH securities-based loan opens new possibilities in alternative funding for:

• Leveraged buyouts
• Mergers and acquisitions
• Retiring high-interest debt
• Bridge loans
• Refinancing margin accounts, and
• Mortgages – new, refinance, or home equity loans.

Many investors think of margin accounts when they are looking to gain leverage from their investments. However, securities loans are a more attractive alternative because they can offer a higher loan-to-value (LTV) ratio, lower fixed-interest rates, and other significant advantages over conventional margin loans